The Puppet State of Puppetalia is a titanic, socially progressive nation, ruled by Gonzo the Great with an even hand, and notable for its smutty television, ritual sacrifices, and lack of airports. The compassionate, democratic, devout population of 13.802 billion puppets enjoy extensive civil rights and enjoy a level of social equality free from the usual accompanying government corruption.

The large, liberal government juggles the competing demands of Education, Administration, and Industry. It meets to discuss matters of state in the capital city of Muppet-overtaken-Manhattan. The average income tax rate is 84.2%, and even higher for the wealthy.

The frighteningly efficient puppet economy, worth a remarkable 2,060 trillion cardboard boxes a year, is quite specialized and mostly made up of the Tourism industry, with significant contributions from Retail, Book Publishing, and Gambling. Black market activity is rampant. State-owned companies are common. Average income is an impressive 149,316 cardboard boxes, and distributed extremely evenly, with little difference between the richest and poorest citizens.

The government guarantees extra-soft tissues to fire-snorting elephants, the Muppet-overtaken-Manhattan State Museum is said to be haunted by ghastly musicians playing 'Nearer Violet to Thee', Jennifer Government is a bestseller, and reports of attacks by bright purple sixty-foot high spiders have recently shot up. Crime is well under control. Puppetalia's national animal is the fraggle, which frolics freely in the nation's many lush forests, and its national religion is Oneness of The Toymaker.

Puppetalia is ranked 301,498^th in the world and 31^st in Libertarian Socialist Confederation for Largest Insurance Industry, scoring -13.56 on the Risk Expulsion Effectiveness Rating.